Weiskopf, Inc

Multiple Choice

Weiskopf, Inc., manufactures and sells two products: Product E6 and Product J2.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $18.10 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Which of the following statements concerning the unit product cost of Product J2 is true?

A) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $101.07.
B) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $101.07.
C) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $42.54.
D) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $42.54.